Intel Secures 2B Funding Boost from Japan’s SoftBank Group

• SoftBank invests $2 billion for 2% stake in Intel.
• U.S. government considers 10% stake in Intel.
• Intel faces challenges in AI market and operations.

Intel has received a $2 billion investment from Japan’s SoftBank, which gives the tech giant a 2% stake in the struggling U.S. chipmaker. This deal, announced on August 19, 2025, is intended to boost Intel’s role in improving U.S. semiconductor manufacturing. SoftBank’s CEO, Masayoshi Son, praised Intel as a trusted leader in innovation.

 He highlighted its important role in increasing U.S. chip production. Intel’s shares rose over 5% in after-hours trading, even though SoftBank’s Tokyo-listed shares fell by 4%. Intel, which is valued at over $100 billion, has struggled with slow sales and ongoing losses, causing it to lose its technological edge.

Reports suggest the U.S. government, led by President Donald Trump, is considering a 10% stake in Intel. This could make it the largest shareholder, surpassing Vanguard. This move fits with Trump’s plan to boost key private sectors.

Also Read: Intel faces hurdles in next-gen PC chip manufacturing: Sources

He has also threatened 100% tariffs on imported chips, which might help Intel. Recently, the government imposed a 15% revenue fee on sales of Chinese AI chips from companies like Nvidia and AMD. Additionally, it took a $400 million stake in MP Materials.

Intel’s CEO, Lip-Bu Tan, took office four months ago and is driving a major turnaround. Tan, who has worked with Son for decades, welcomed SoftBank’s investment as a way to boost U.S. technology leadership.

Although Trump initially called for Tan’s resignation due to supposed ties to China, a recent meeting led to praise for Tan’s impressive story. Analyst Danni Hewson from AJ Bell pointed out that SoftBank’s investment shows confidence in Intel’s recovery. However, the company still faces notable challenges like its delay in the AI market and operational issues.